1. What is the UK Salary Calculator?

The UK Salary Calculator estimates your take-home pay (net salary) after accounting for income tax, National Insurance contributions, student loan repayments, and pension contributions. It uses the latest 2025 tax brackets and thresholds.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Income Tax — Calculated using 2025 tax brackets (20%, 40%)
• National Insurance — Calculated using 2025 NI rates (12%, 2%)
• Student Loan — 9% of earnings above the threshold for your repayment plan
• Pension Contributions — Percentage of gross pay you contribute

3. Understanding UK Tax and Deductions

Details: The UK tax system has personal allowances, progressive tax bands, and different National Insurance rates for employees. Student loan repayments and pension contributions further affect your take-home pay.

4. Using the Calculator

Tips: Enter your annual gross salary before any deductions. Select your student loan repayment plan (if applicable) and enter your pension contribution percentage. The calculator will show your estimated net pay and all deductions.

5. Frequently Asked Questions (FAQ)

Q1: Are the tax brackets up to date for 2025?
A: This calculator uses projected 2025 tax brackets. Always check HMRC for the latest official rates.

Q2: What's the difference between student loan plans?
A: Different plans have different repayment thresholds. Plan 1 (pre-2012), Plan 2 (post-2012), Plan 4 (Scottish).

Q3: Is pension contribution tax relief included?
A: This calculator assumes standard workplace pension contributions where tax relief is applied automatically.

Q4: What about other deductions like benefits or salary sacrifice?
A: This calculator covers standard deductions. Additional voluntary deductions would need to be accounted for separately.

Q5: How accurate is this calculator?
A: It provides a good estimate but may differ slightly from your actual payslip due to rounding, pay frequency, or specific circumstances.